When a kit lens is provided with the D5000, it means it is fully compatible with the camera. Furthermore, I would recommend reading other threads regarding lenses and the D5000 on this forum, plenty has been said

Regarding the price, when converting, it seems a fairly normal (good) price, but it can differ per country if a direct conversion is a good comparison.

Hello j_kalyanaraman, Welcome to CL.
If the budget allows, 18-105 is very good.
You can swap it (if you want to) with the 18-55 kit lens.
Take a look at some of the sample images taken by a fellow member, Citurspers. (Marijn, without your permission )

Hello j_kalyanaraman,
Congratulations to you. The price is great but i think you didn't get it with warranty or did you?
Wout made some good suggestions. Keep them in mind for future purchase. Enjoy your new gear.
Have a nice day.
Rizwan.

Hello Kalyan, and welcome to the friendly Camera Labs forum!
To enjoy your stay here please have a look at the house-rules!
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Congratulations on your great new camera. I'd suggest to first get used to your new gear and explore what this lens can do for you.
It's only after some time that you recognize whether you need a faster, wider, longer or more macro lens.
Come back and tell us about your experiences.

i have read in many d5000 camera reviews that it does not have AF motor built into it, AF is in the lenses, is it really a big issue in a camera not having AF in-built....am quite new to dslr so not very clear about this...

well, it's not that big a deal. But with a D90 or any other camera that has a built in autofoucs motor, you'll have the choice of using the wide range of lenses that doesn't have one in them. e.g 50mm f1.8 D, which is produce astonishing results and very cheap. A fellow member Wout has a list of all of those lenses. Take a look at it.